Accrued vacation pay.

A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $63,600. Required: a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. Refer to the Chart of Accounts for exact wording of account titles. b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet? CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Wash 410 Sales 111 Accounts Receivable 810 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Supplies 520 Salaries Expense 118 Prepaid Insurance 524 Depreciation Expense-Building 120 Land 525 Delivery Expense 526 Repairs Expense 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 529 Selling Expenses 531 Rent Expense 126 Accumulated Depreciation-Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Supplies Expense 210 Accounts Payable 535 Payroll Tax Expense 213 Interest Payable 538 Vacation Pay Expense 214 Notes Payable 537 Pension Expense 215 Salaries Payable 538 Cash Short and Over 216 Social Security Tax Payable 539 Product Warranty Expense 217 Medicare Tax Payable 540 Miscellaneous Expense 710 Interest Expense 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 210 Common Stook 211 Retained Earnings 12 Dividends a. Journalize the adjusting entry required on January 31, the end of the first month of the current year to record the accrued vacation pay. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries